May 11, 2018Scott McGillivray

Not all fixer uppers are created equal. While some offer fantastic opportunities for value appreciation, others are monsters that will steal all your money and never give it back. Here are some signs that yours might be the latter…

Not all fixer uppers are created equal. While some offer fantastic opportunities for value appreciation, others are monsters that will steal all your money and never give it back. Here are some signs that yours might be the latter…

It’s in a Bad Neighbourhood

1/10

It’s in a Bad Neighbourhood

1/10

Photo Credit: Getty Images

When it comes to renovating, almost anything can be done if you’ve got the budget, but there’s one thing you’ll never be able to change – location. If the house is located next to a sewage treatment plant or in a high-crime area, it doesn’t matter what you do to the property, it’s automatically unappealing to most buyers.

It’s in a Bad Neighbourhood

PHOTO 1 of 10

READ LESS -

When it comes to renovating, almost anything can be done if you’ve got the budget, but there’s one thing you’ll never be able to change – location. If the house is located next to a sewage treatment plant or in a high-crime area, it doesn’t matter what you do to the property, it’s automatically unappealing to most buyers.

Photo Credit: Getty Images

The Land it’s on Has Issues

2/10

The Land it’s on Has Issues

2/10

Photo Credit: Getty Images

Much like the neighbourhood it’s situated in, the land your home sits on can’t be changed. If the area is prone to flooding, for example, you might want to think twice before buying. Whatever updates you make won’t matter if the house ends up underwater!

The Land it’s on Has Issues

PHOTO 2 of 10

READ LESS -

Much like the neighbourhood it’s situated in, the land your home sits on can’t be changed. If the area is prone to flooding, for example, you might want to think twice before buying. Whatever updates you make won’t matter if the house ends up underwater!

Photo Credit: Getty Images

When it’s Not Structurally Sound

3/10

When it’s Not Structurally Sound

3/10

Photo Credit: Skit Inc.

A fixer upper is a house that has a structure that's more or less intact. If it's not, you’re getting into major renovation and rebuild territory, and that will cost big bucks. So when you’re looking at potential fixer uppers, bring a home inspector with you and have them look over the property. If the inspector unearths structural damage, you may want to move on, because it’s no longer a fixer upper – it’s a major renovation.

When it’s Not Structurally Sound

PHOTO 3 of 10

READ LESS -

A fixer upper is a house that has a structure that's more or less intact. If it's not, you’re getting into major renovation and rebuild territory, and that will cost big bucks. So when you’re looking at potential fixer uppers, bring a home inspector with you and have them look over the property. If the inspector unearths structural damage, you may want to move on, because it’s no longer a fixer upper – it’s a major renovation.

Photo Credit: Skit Inc.

When the Cost of Renovating Will Price You Out of the Neighbourhood

4/10

When the Cost of Renovating Will Price You Out of the Neighbourhood

4/10

Photo Credit: Skit Inc.

If you’re buying a fixer upper with the intent to flip, pay close attention to the cost of the fixes you want to make versus the price you can get on the market when you sell. One of the most common pitfalls of flipping is over-investing. If you spend too much, you may price yourself out of the neighbourhood and not be able to recoup your full investment when it's time to sell.

When the Cost of Renovating Will Price You Out of the Neighbourhood

PHOTO 4 of 10

READ LESS -

If you’re buying a fixer upper with the intent to flip, pay close attention to the cost of the fixes you want to make versus the price you can get on the market when you sell. One of the most common pitfalls of flipping is over-investing. If you spend too much, you may price yourself out of the neighbourhood and not be able to recoup your full investment when it's time to sell.

Photo Credit: Skit Inc.

When the Foundation is Crumbling

5/10

When the Foundation is Crumbling

5/10

Photo Credit: Skit Inc.

Foundation issues are never good, and even seasoned renovators dread having to dig out basements. Major foundation fixes are big, risky undertakings that can lead to even further issues. If you’re looking for a simple fixer upper, leave the basement dig-out to someone else and keep looking.

When the Foundation is Crumbling

PHOTO 5 of 10

READ LESS -

Foundation issues are never good, and even seasoned renovators dread having to dig out basements. Major foundation fixes are big, risky undertakings that can lead to even further issues. If you’re looking for a simple fixer upper, leave the basement dig-out to someone else and keep looking.

Photo Credit: Skit Inc.

Seriously Sloped Floors

6/10

Seriously Sloped Floors

6/10

Photo Credit: Skit Inc.

Slightly sloped floors are fairly common in older houses, but when the issue gets really noticeable, you might have a problem. Sloped floors can be a result of foundation issues, rotting supports, or improperly installed joists. And while there are solutions to these problems, they can be very costly. If I were looking for a fixer upper for a quick flip, I would definitely avoid one with sloped floors.

Seriously Sloped Floors

PHOTO 6 of 10

READ LESS -

Slightly sloped floors are fairly common in older houses, but when the issue gets really noticeable, you might have a problem. Sloped floors can be a result of foundation issues, rotting supports, or improperly installed joists. And while there are solutions to these problems, they can be very costly. If I were looking for a fixer upper for a quick flip, I would definitely avoid one with sloped floors.

Photo Credit: Skit Inc.

Too Many Fixes Required

7/10

Too Many Fixes Required

7/10

Photo Credit: Getty Images

When it comes to fixer uppers, it’s the cosmetic upgrades that offer the most opportunity for adding value. Things like paint touch-ups, updated flooring and new kitchen cabinets are your best bets. Once you get into major issues like replacing furnaces and updating electrical and plumbing, you’re entering new territory. If a house has many issues, it doesn’t mean that it’s not worth saving, but it may be better suited to someone looking for a bigger renovation project.

Too Many Fixes Required

PHOTO 7 of 10

READ LESS -

When it comes to fixer uppers, it’s the cosmetic upgrades that offer the most opportunity for adding value. Things like paint touch-ups, updated flooring and new kitchen cabinets are your best bets. Once you get into major issues like replacing furnaces and updating electrical and plumbing, you’re entering new territory. If a house has many issues, it doesn’t mean that it’s not worth saving, but it may be better suited to someone looking for a bigger renovation project.

Photo Credit: Getty Images

If it’s Going to Depreciate in Value

8/10

If it’s Going to Depreciate in Value

8/10

Photo Credit: Getty Images

If you’re confident a house is going to appreciate in value, you can feel pretty good about the cost of fixing it up. However, if you’re less certain about the market, exercise caution. The worst thing you can do is spend time and money fixing up a property that’s going to go down in value. In cases like this, I would wait for the market to even itself out before making an investment (or rent it out for awhile).

If it’s Going to Depreciate in Value

PHOTO 8 of 10

READ LESS -

If you’re confident a house is going to appreciate in value, you can feel pretty good about the cost of fixing it up. However, if you’re less certain about the market, exercise caution. The worst thing you can do is spend time and money fixing up a property that’s going to go down in value. In cases like this, I would wait for the market to even itself out before making an investment (or rent it out for awhile).

Photo Credit: Getty Images

The Municipality is Unfriendly

9/10

The Municipality is Unfriendly

9/10

Photo Credit: Getty Images

Some municipalities make it easier than others when it comes to renovating. Some make it more challenging to get permits; others require that you go through more steps, etc. While the house itself might be worth saving, it might not be the ideal project for you. When you’re flipping a house you want to remove as many obstacles as possible, so find a neighbourhood that’s renovation friendly.

The Municipality is Unfriendly

PHOTO 9 of 10

READ LESS -

Some municipalities make it easier than others when it comes to renovating. Some make it more challenging to get permits; others require that you go through more steps, etc. While the house itself might be worth saving, it might not be the ideal project for you. When you’re flipping a house you want to remove as many obstacles as possible, so find a neighbourhood that’s renovation friendly.

Photo Credit: Getty Images

If the House has Been Condemned

10/10

If the House has Been Condemned

10/10

Photo Credit: Getty Images

The whole point of buying a fixer upper is to fix it up yourself. If a house is in such terrible shape that it’s been condemned, that means you absolutely can’t fix it yourself. You’ll need professional trades to come in and fix the plumbing, electrical, HVAC, and who knows what else. If you’re looking for a painless fixer upper, a condemned house isn’t it.

If the House has Been Condemned

PHOTO 10 of 10

READ LESS -

The whole point of buying a fixer upper is to fix it up yourself. If a house is in such terrible shape that it’s been condemned, that means you absolutely can’t fix it yourself. You’ll need professional trades to come in and fix the plumbing, electrical, HVAC, and who knows what else. If you’re looking for a painless fixer upper, a condemned house isn’t it.